Instruction
1. Is the decision whether or not to sell Qantas’ frequent flyer program a strategic or operational decision? Is it a programmed or non-programmed decision? Explain your answer using references to Buhler (2001) or Kourdi (2003).
2. Suppose Alan Joyce decides to take a rational approach to the decision whether or not to sell the frequent flyer program. List a step-by-step approach you would recommend, and include specifics regarding what kind of information or choices should be considered at each step. Do not just list the steps, give detail at each step and use material both from your research on Qantas and from Buhler (2001) or Kourdi (2003) to come up with these steps.
3. Joyce has been the CEO of Qantas for six years and is an experienced airline executive. Given his experience, do you recommend Joyce use a rational or intuitive approach to this decision? If there is a new CEO who comes from another industry and does not have this airline experience, would you recommend they use a rational or intuitive approach? Explain your reasoning, and make references to Buhler (2001) or Kourdi (2003) as appropriate.
Reference Material:
- Ross, K. (2014, Aug 27). Qantas CEO faces tough choices. Wall Street Journal.
- Ironside, R. (2014, Aug 15). Qantas warned to ground plans to sell frequent flyer program. The Gold Coast Bulletin.
- Gilder, P. (2014, Mar 29). Loyalty future cloudy. The Gold Coast Bulletin.
- Australia: Qantas frequent flyer hits 10 million member mark. (2014). MENA Report.
- Buhler, P. M. (2001). Decision-making: A key to successful management. SuperVision, 62(2), 13-15.
- Kourdi, J. (2011). Chapter 2: Assessing your decision-making style. Effective Decision Making : 10 Steps to Better Decision Making and Problem Solving.